With EV foray, Atul Auto eyes L5 battery-run three-wheelers via subsidiary

The wholly-owned subsidiary Atul Greentech Pvt Ltd designs and develops innovative solutions for last-mile electric mobility for domestic and export markets

Having so far catered to the lead acid battery-powered L3 category of three-wheelers, with its recent foray in electric vehicles (EV), Gujarat-based Atul Auto Ltd. would now be looking to cater to the lithium ion-powered L5 vehicles that compete with conventional three-wheelers.

Recently, the company announced its foray into EV three-wheelers through its wholly-owned subsidiary Atul Greentech Pvt Ltd (AGPL) which is engaged in designing and developing innovative solutions for last mile electric mobility for domestic and export markets.

Over the past few years AGPL has developed automotive grade fixed thermal battery solutions, battery management systems and vehicle telematics solutions. However, recently AGPL announced collaboration with Honda Power Pack Energy India Pvt Ltd and Valeo to develop a prototype cargo and passenger three-wheeler vehicle.

"So far, Atul Auto was only present in the L3 category of electric three-wheelers which mostly comprised pedal rickshaws. However, with AGPL the company is now foraying into the L5 category of EV three-wheelers which compete directly with conventional three-wheelers where we are already present with diesel and alternate fuel models," said Jitendra Adhia, president - finance at Atul Auto Ltd.

The EV business of AGPL will be divided into two separate models. Firstly, AGPL will be selling EV three-wheelers entirely manufactured by Atul Auto with fixed battery solutions. However, the second model involves battery swapping powered by Honda's Mobile Power Pack and Valeo's powertrain system.

AGPL would launch the e-vehicle after successful completion of field trials. The vehicle with swapping battery will be equipped with Valeo's integrated compact electric powertrain system. "This world class swappable solution from AGPL will enable our fleet and individual customers to lower the Total Cost of Ownership and up front capital expenditure," Adhia added.

In its conventional three-wheeler business, Atul Auto Ltd. manufactures 0.5 and 0.35 tonnes capacity vehicles in diesel as well as alternate fuel ranges including CNG and LNG. While passenger vehicles form 50-55 per cent of its business, the rest comes from cargo models. The company has two plants with 60000 units per annum capacity each totaling 120,000 units per annum along with over 10000 batteries per annum capacity. Having witnessed a setback in the last couple of years due to factors led by COVID-19 pandemic, the company is expecting to bounce back in the financial year (FY) 2022-23.

"We expect a stable economic environment as well as availability of retail finance to lead the three-wheeler industry back to normal," said Adhia.

Atul Auto has already incurred a capex of roughly Rs 300 crore for vehicular platform, fixed battery solutions and production facility even as investment continues on product development. For the nine months of FY22, the company reported total revenue from operations of Rs 220 crore while that for the entire fiscal year of 2020-21 stood at Rs 295.90 crore.